Key Takeaways
- DOGE is up 1% and now trading at $0.095.
- The memecoin could rally toward the $0.10 psychological level in the near term.
Meme Coins Display Renewed Strength
Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE) are all showing signs of renewed strength on Tuesday, as bullish technical setups emerge across major meme coins. DOGE and SHIB are testing key resistance zones, where a close above these levels could signal further upside. Meanwhile, PEPE continues its recovery, finding support near the crucial 50-day Exponential Moving Average (EMA), which sets the stage for a potential rally continuation.
Derivatives Data Backs Bullish Outlook for Dogecoin
Dogecoin is up 1% in the last 24 hours and could rally higher in the near term amid a bullish outlook from the broader crypto market. Bitcoin has reclaimed the $76,000 level, while Ether is now trading above the $2,300 mark once again. Dogecoin looks to embark on a breakout above the $0.10 psychological level if the bullish trend persists.
Dogecoin's derivatives data suggests that bulls are currently in control of the market. The futures Open Interest (OI) now reads $1.23 billion, up from the $986 million recorded on Monday. This increase in OI indicates that retail traders are opening more positions in anticipation of a bullish move by Dogecoin.
Dogecoin Eyes Extended Gains with Close Above 50-Day EMA
Similar to other leading cryptocurrencies, the DOGE/USD 4-hour chart remains bearish but efficient. It has surpassed the 50-day EMA at $0.095 following its 2.4% rally on Monday. Dogecoin has been consolidating beneath this resistance for over a month and briefly broke above it last week, but struggled to maintain support.
If DOGE closes its daily candle above the $0.095 level and holds, the altcoin could extend its rally toward the 100-day EMA at $0.105. The Relative Strength Index (RSI) on the daily chart is at 52, above the neutral level of 50, signaling weakening bearish momentum. Furthermore, the Moving Average Convergence Divergence (MACD) indicator shows green histogram bars, reinforcing the positive outlook.
On the downside, if DOGE fails to hold above the 50-day EMA, it could face a potential correction, bringing the price back toward the February 6 low of $0.080.
